Rupee Closes Lower Against Dollar

The rupee closed weaker against the dollar on Wednesday.

The currency weakened 16 paise to close at Rs 83.35 against the greenback. It had opened at Rs 83.21 compared to a close of Rs 83.19 on Tuesday, according to Bloomberg data.

"On the global front, as the dollar index keeps sliding, breaching the critical 101.50 support level, it's anticipated to sustain its decline, mainly bolstered by strong speculations with larger and earlier Fed cuts in 2024," Amit Pabari, managing director at CR Forex, said.

"DXY drops to its lowest level since July near 101.45, with 100.80 now acting as an important support," Kunal Sodhani, vice president of Shinhan Bank, said. "The U.S. Core PCE showed the smallest rise since April 2021."

"Fed easing expectations have intensified. According to the WIRP, the market has priced in 15% odds of a cut on January 31 and fully priced in March 20 with the six cuts fully priced in by end-2024. For USDINR, 83.05 acts as a support while 83.28 a resistance," Sodhani said.